CEMEX (CX) to Submit Complaint Seeking International Arbitration - Shares Down 2%
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CEMEX, S.A.B. de C.V. (NYSE: CX) will submit a complaint seeking international arbitration before the International Center for Settlement of Investment Disputes following the Venezuelan Government’s confiscation of assets, deprivation of rights of CEMEX Venezuela as well as the initiation of the expropriation of CEMEX’s business.
CEMEX believes the confiscation and subsequent start of the expropriation process is a flagrant violation of the Constitution, Law of Expropriation and other laws of Venezuela. CEMEX also believes the Venezuelan Government’s actions highlight a lack of respect for the principles of international law and the treaties relating to reciprocal protection of investments which forbid the occupation of goods and deprivation of rights without fair and effective compensation and without an expropriation procedure.
After careful analysis, CEMEX determined that it could not accept the compensation proposal offered by the Government of Venezuela as part of its ongoing process to nationalize its assets. CEMEX believes that the offer of US$650 million significantly undervalues its business in Venezuela.
In addition, the offer presented to CEMEX is lower, proportionally, than the ones offered to the European cement companies, considering value per ton of installed capacity and EBITDA multiple.
CEMEX, S.A.B. de C.V. (CEMEX) a holding company primarily engaged, through its operating subsidiaries, in the production, distribution, marketing and sale of cement, ready-mix concrete, aggregates and clinker. [SM]
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